Financing a Big O Tires with an SBA loan
Since FY2020, 30 Big O Tires locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.
Big O Tires franchising: bigofranchise.com
What a Big O Tires deal looks like
Big O Tires is an established brand in the SBA loan file: 30 acquisitions cleared underwriting in the last five years. The median loan was $1,095,200 at 8.25 percent. Amortized over 25 years, that is about $8,635 a month, or $103,621 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $121,689 of buyer cash, some of which a seller note on standby can sometimes cover.
Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.
7(a) or 504 for a Big O Tires?
Big O Tires deals often include the real estate, which is why the median loan here is large and runs long. When the building is part of the purchase, the SBA 504 program is usually the better fit: a 50/40/10 stack, a bank first lien, a fixed-rate CDC debenture, and 10 percent down, with the real estate amortized up to 25 years. Model that structure in the 504 calculator.
When you are buying an existing Big O Tires as a going concern without the real estate, a 7(a) loan is the usual route, typically over 10 years. Price it in the 7(a) calculator.
What it costs to open a Big O Tires
These are Big O Tires's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.
- Total initial investment
- $511,500 to $1,882,500
- Initial franchise fee
- $17,500
- Ongoing royalty
- Royalty is a matrix, not a single flat percent: currently roughly 3.5%-5.0% of adjusted gross sales, plus separate 2% categories (national/key accounts, farm-class tires, excess service-department sales). A ~0.9% national marketing fee and local advertising fund apply on top.
- Net worth required
- $300,000
- Liquid capital required
- $100,000
Automotive service / tire retail, figures from the 2025 FDD. Sources: VetMyFranchise - Big O Tires 2025 FDD financials, FranchiseDirect - Big O Tires FDD (Item 5/6/7), Entrepreneur Franchise 500 - Big O Tires. Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.
Lenders that actually write these
The banks below approved the most Big O Tires acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.
- Live Oak Banking Company12 Big O Tires loans
- United Business Bank3 Big O Tires loans
- Bank of Utah2 Big O Tires loans
- Citizens Bank2 Big O Tires loans
- Exchange Bank2 Big O Tires loans
SBA conditions on this brand
1. When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Rider and Modification may not be executed. The Option and Shop Lease Agreement may not be exeucted for SBA Loans.
Every franchise the SBA will finance carries an entry in its directory, and some carry conditions like this one about how the real estate and the lease may be held. A lender has to clear these before funding, so they are worth reading before you make an offer.
Frequently asked questions
How much does it cost to buy a Big O Tires franchise?
Opening a Big O Tires takes a total initial investment of about $511,500 to $1,882,500, including a $17,500 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Big O Tires was $1,095,200 in the federal loan file.
Can you buy a Big O Tires with an SBA loan?
Yes. 30 Big O Tires locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. The directory attaches a lender condition to this brand, so a lender clears that before funding.
How much do you need for a down payment on a Big O Tires?
SBA requires a minimum 10 percent equity injection. On the median Big O Tires loan of $1,095,200, that is roughly $121,689 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 25 years, around $8,635 a month at the median rate.
Which lenders finance Big O Tires acquisitions?
Live Oak Banking Company, United Business Bank and Bank of Utah wrote the most Big O Tires acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.
Other automotive brands buyers finance
Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Big O Tires's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Big O Tires or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.